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P6.12 The Inviting Inn has 500 available guest rooms. For a certain week next month, the anticipated transient demand for rooms is as follows. Monday

P6.12 The Inviting Inn has 500 available guest rooms. For a certain week next month, the anticipated transient demand for rooms is as follows.

Monday 200

Tuesday 200

Wednesday 200

Thursday 200

Friday 100

Saturday 50

Sunday 50

The Inviting Inn also has committed the following number of rooms for group sales during the same week:

Monday 200

Tuesday 200

Wednesday 300

Thursday 300

Friday 100

Saturday 100

Sunday 100

The Inn has the possibility of booking another of 100 rooms for the night of Tuesday, Wednesday,Thursday and Friday of that week at a discounted rate of $60 per room. The inn's rack rate for transient guests is $80, and it marginal cost per room sold is $15.

a. Assuming the new group is booked, calculate the additional net sales revenue gross sales revenue less marginal costs, to the inn.

b. What factors, other than net sales revenue, might you consider before committing to this new group sale.

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